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The BMW Range
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E39 vs Mazda6
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<blockquote data-quote="zib" data-source="post: 623793" data-attributes="member: 23925"><p>Well the cons of own owning a UDM..</p><p></p><p>Offtopic on the HP loan, I am afraid that is not quite true. Housing loan is calculated on daily rest or if you like reducing interest as the interest is calculated on the remaining unpaid amounts taken.</p><p> </p><p>Car loans use Rule72 which is ok for investment projections but quite unfair to apply for any financial institutions. In the US and the UK, this rule72 is illegal i.e calculating loan interest on compounded basis.</p><p> </p><p>If you use the mortgage calculator on the internet and assuming you are taking an RM100k housing loan as a car loan for 5 years, u will see the payment is much much lower than the HP loan calculation as the method of arriving at the payments are different.Try here :<a href="http://www.iproperty.com.my/financing/calculators/mortgagepayment.aspx" target="_blank">http://www.iproperty.com.my/financing/calculators/mortgagepayment.aspx</a></p><p></p><p>Now do the same and take a normal HP calculator (e.g. here <a href="http://www.autoworld.com.my/v2/tools/loan_payment.asp" target="_blank">http://www.autoworld.com.my/v2/tools/loan_payment.asp</a>) and put the same amount of RM100k and the same interest. See how much you get?</p><p></p><p>Roughly speaking a 2% flat rate pa for HP is equivalent to 4% pa reducing balance for a mortgage. So most HP loans are giving ca~3% flat which is almost equivalent to ~6% pa for mortgage. FYI credit card interests are also calculated based on reducing balance. ONly Ah Longs calculated based on flat rates <img src="data:image/gif;base64,R0lGODlhAQABAIAAAAAAAP///yH5BAEAAAAALAAAAAABAAEAAAIBRAA7" class="smilie smilie--sprite smilie--sprite1" alt=":)" title="Smile :)" loading="lazy" data-shortname=":)" /></p><p></p><p>So it is best to keep HP loans short and as minimum as you can. In other words, if you have cash for a car then better pay cash or dump more than 30% as downpayment. Well...not easy to do for most people in MY unfortunately myself included...huhuu</p><p></p><p>yes it all depends on the risk appetite of the individuals..</p></blockquote><p></p>
[QUOTE="zib, post: 623793, member: 23925"] Well the cons of own owning a UDM.. Offtopic on the HP loan, I am afraid that is not quite true. Housing loan is calculated on daily rest or if you like reducing interest as the interest is calculated on the remaining unpaid amounts taken. Car loans use Rule72 which is ok for investment projections but quite unfair to apply for any financial institutions. In the US and the UK, this rule72 is illegal i.e calculating loan interest on compounded basis. If you use the mortgage calculator on the internet and assuming you are taking an RM100k housing loan as a car loan for 5 years, u will see the payment is much much lower than the HP loan calculation as the method of arriving at the payments are different.Try here :[url]http://www.iproperty.com.my/financing/calculators/mortgagepayment.aspx[/url] Now do the same and take a normal HP calculator (e.g. here [url]http://www.autoworld.com.my/v2/tools/loan_payment.asp[/url]) and put the same amount of RM100k and the same interest. See how much you get? Roughly speaking a 2% flat rate pa for HP is equivalent to 4% pa reducing balance for a mortgage. So most HP loans are giving ca~3% flat which is almost equivalent to ~6% pa for mortgage. FYI credit card interests are also calculated based on reducing balance. ONly Ah Longs calculated based on flat rates :) So it is best to keep HP loans short and as minimum as you can. In other words, if you have cash for a car then better pay cash or dump more than 30% as downpayment. Well...not easy to do for most people in MY unfortunately myself included...huhuu yes it all depends on the risk appetite of the individuals.. [/QUOTE]
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